3 Things You Probably Didn't Know About Bitcoins

There's More Than One Digital Currency

The price of one bitcoin has been over $100 for a few months now and the price is still growing as they become more and more popular. For those of you who would like to invest in this new currency but feel like it's grown too expensive to profit from, there are some cheap alternatives. Litecoins, for example are just like bitcoins but a lot cheaper. The only major difference is that there will be more litecoins in existence than bitcoins, making litecoins slightly less valuable. As of today the price of a litecoin is around $3. Litecoins are, in many ways, just like bitcoins were a few years ago; dirt cheap before they became worth over a hundred dollars per coin. For all of the early adopters, I believe litecoins will be a very rewarding investment just like bitcoins have been.

They're Popular With Drug Dealers

The one thing that sets bitcoins apart from anything anyone has ever seen before is its ability to be completely anonymous yet extremely secure. For illegal drug dealers and gambling sites, this makes bitcoins very attractive. The most popular online black market, Silk Road has been described as the "Amazon for drugs" by some, and sells pretty much everything illegal. Partly thanks to bitcoins, the government can't pinpoint who is buying and selling, they can't close the domain, and they can't track the purchases.

You can use Them to Buy a House

Do you have 5,800 bitcoins to spare? Are you in need of a vacation home in the Rockies? If you are, Taylor More is willing to sell you his. Personally, I hope someone decides to buy this home because it makes bitcoins that much more of a currency. A few years ago there were only a small number of places (most of these being gambling and illegal drug sites) to actually use your bitcoins. I think everyone agrees a major part of what makes a currency legitimate is what you can buy with it. As more people decide to spend their bitcoins instead of trade them in the currency will hopefully become more recognized and credible despite not being backed by anything.